Gem Aromatics IPO gets fully subscribed on Day 1, GMP declines; should you apply?

Gem Aromatics IPO

The initial public offering of Gem Aromatics got fully subscribed on its first day of public bidding. This comes despite a fall in the GMP for the Rs 451-crore IPO.

Gem Aromatics IPO received bids for over 1 crore shares, as against the offer size of 97.82 lakh shares, according to data on NSE. Retail investors and Qualified Institutional Buyers (QIB) have fully subscribed their respective reserve portions. Non Institutional Investors (NII) have booked 88 percent of the portion kept for them.

Key things to know about Gem Aromatics IPO:

Mumbai-based Gem Aromatics, which manufactures specialty ingredients including essential oils, aroma chemicals and value-added derivatives, launched its IPO to raise more than Rs 451 crore through fresh issue of shares worth Rs 175 crore, and an offer-for-sale of 85 lakh shares by existing shareholders, including investor Doterra Enterprises which holds 25 percent stake.

The company has set a price band of Rs 309-325 per share for its maiden public issue. Investors can bid for a minimum of 46 shares, requiring an investment of Rs 14,950 at the upper price band, and in multiples thereafter.

The IPO will remain open for public bidding between August 19 and August 21. The allotments will likely be finalized by August 22, and the shares are likely to debut on stock markets on August 26.

Gem Aromatics IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 7.38 percent over the IPO price at Rs 349 apiece, according to data on Investorgain. This is lower than the 13 percent GMP cited by the site last week.

According to IPO Watch, the unlisted shares of the company were trading with 7 percent GMP over the IPO price in the grey market.

Should you apply?

Investors looking to invest can invest in the IPO for the long term, said Master Capital Services. "With the global shift towards sustainability, technological advancements, and changing market dynamics, India is uniquely positioned to capitalize on these opportunities. Gem Aromatics is well positioned to take benefit from this expected growth. The company is expanding its manufacturing capacities for existing and new products and continuing to focus on sustainability and reducing operating costs and improving operational and business efficiency," it added.

A day before the IPO opened for public bidding, Gem Aromatics raised Rs 135.4 crore from 13 institutional investors via anchor book on August 18. Citigroup Global, Societe Generale, Goldman Sachs, Nippon India, SageOne, Nuvama, and Niveshaay Sambhav Fund were among 13 institutional investors participated in the anchor book.

Gem Aromatics intends to utilise Rs 140 crore from the fresh issue proceeds for repaying debt, and the remaining funds for general corporate purposes. As of June 2025, the total borrowings of the company and its subsidiaries stood at Rs 259.8 crore.

Also read: Gem Aromatics IPO; a niche play on flavours and fragrances market

The company offers 70 products across four product categories mint and mint derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients through its three manufacturing facilities.

Motilal Oswal Investment Advisors is acting as the sole book running lead manager for the Gem Aromatics IPO.

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